Key Points:

Another New Zealand fund set up by Australian hedge fund Absolute Capital Group, now in administration, is to be liquidated.

Absolute, half owned by giant Dutch bank ABN Amro and half by staff, suffered a disastrous fall in revenues after the United States sub-prime mortgage crisis and was put into liquidation last month.

The company had around A$400 million ($458 million) of assets under management.

It said last year it was difficult to offload investments in collateralised debt obligations. In November, the NZX announced a trading halt on securities of PINs (packaged income notes) Securities NZ.

Yesterday, it was announced the 2005 series, yielding 9.25 per cent, with outstanding debt of around $30 million and due to mature in early 2013, was placed in liquidation.

The other series, listed in late 2006 and maturing in early 2014, has about $50 million of debt outstanding.